Ethereum Price Drops to $1,540 Amid Selling Pressure
The price of Ethereum (ETH), the world’s second-largest cryptocurrency, has experienced a significant drop of over 2%, falling to $1,540. Despite efforts from Ethereum bulls to regain lost ground above the $1,600 level, they have been unsuccessful. On-chain data provider Santiment revealed that the drop in price coincided with a movement of dormant ETH from older wallets. This decrease in the average age of ETH holdings during a price decline suggests capitulation and potential market reversals.
Key Support Levels for ETH
The major support levels for Ethereum to keep an eye on are $1,550 and $1,370. These levels present higher probabilities of a bounce back. At present, the ETH price has bounced back from the first support zone and is trading at $1,579 with a market cap of $189 billion. However, a further drop to $1,407 is possible if the price of Bitcoin continues to fall.
Potential Rebound of Ethereum’s Price
If Bitcoin’s price rebounds, it could exert upward pressure on Ethereum’s price, potentially turning the $1,575 resistance level into a solid support zone. This could pave the way for Ethereum to surpass the $1,800 mark and reach the significant milestone of $2,000.
Ethereum Weighted Sentiment and Market Outlook
Santiment’s data shows that the age consumed metric has remained relatively stable recently, indicating a lack of significant selling activity from long-term holders. However, overall market sentiment appears pessimistic, and there has been a decline in the mean coin age, suggesting a bearish sentiment and a potential absence of an accumulation phase for ETH.
While there was a substantial outflow of ETH from exchanges on August 23rd, there haven’t been notable outflows since then.
Hot Take: Ethereum Faces Selling Pressure as Price Drops to $1,540
Ethereum is currently facing selling pressure, resulting in a price drop to $1,540. The movement of dormant ETH from older wallets during this decline indicates capitulation and potential market reversals. Key support levels to watch for are $1,550 and $1,370. If Bitcoin’s price rebounds, it could positively impact Ethereum’s price, possibly leading to a break above the $1,575 resistance level and reaching $2,000. However, overall market sentiment is bearish, and the decline in the mean coin age points to a lack of accumulation phase for ETH. It remains to be seen how the market will react in the coming days.
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